Boston Real Estate Sales Market
The real estate market in Boston is among the most competitive markets in the U.S. Over the past 5 years the price of real estate in this city has been steadily increasing at a rate of about 8% per year. Currently, an average one bedroom apartment rents for about $1,100 a month and a square foot of residential real estate, in a good neighborhood costs approximately $250, making Boston the nation's third most expensive city to live in. The Boston real estate market can also be looked upon in terms of seasons.
WEICHERT, REALTORS® - Copley Real Estate. is dedicated to being a leader among full service Boston real estate companies. We have highly qualified professional agents and staff to fulfill your needs regarding all aspects of property management, condominium sales, and apartment rentals.
BUYER REPRESENTATION
Understanding Agency and Agency Disclosure
In Massachusetts, homebuyers can choose to work with a buyer's agent or a seller's agent. Either way, your agent is a specially trained professional, licensed by the state of Massachusetts, obligated by law to treat all parties to a real estate transaction fairly.
Seller's Agents or Subagents
If you work with a selling agent or subagent, there is no contract between you and the agent, and you are not the agent's client, but instead you are the agent's customer. You will receive a Mandatory Agency Disclosure form that clearly defines the relationships between you and the agent and the seller and the agent. lists the fair treatment duties owed to you and indicates that the seller's agent or subagent works for the seller and as such, the agent's primary fiduciary responsibility is not to you, but to the seller. This doesn't mean a seller's agent or subagent can treat you unfairly, lie to you, not disclose information about property of which they are aware and so on. But, make no mistake, that agent's first concern is getting the best result (price) for the seller.
Buyer's Agent
If you work with a buyer's agent, you are that agent's client. That agent works for you, not the seller. You and the buyer's agent sign a Buyer's Agency Contract that includes the Agency Disclosure described above. The Agency Disclosure summarizes the fiduciary and other fair and ethical treatment responsibilities of the agent to all parties and the agent's fiduciary responsibilities to you as the client, and clearly indicates that the buyer's agent is the agent of the buyer. The buyer's agent placing the interests of the homebuyer first, but also must work with listing agents as well. A buyer's agent may do any of the following:
* Offer an opinion or critique of a seller's property.
* Recommend/suggest an offer price or give you an opinion about whether a particular house is priced too high or too low.
* Structure offers and draft offer provisions with the buyer's best interests in mind.
* Assist the buyer with negotiating strategies for getting the best price and terms.
* Disclose all information; research a property's history and liens to help a buyer make an informed decision.
* Give advice that is within the scope of the agent's professional knowledge base.
Some Facts About Buyer Brokerage:
* In 2003, 63% of buyers who bought a home through an agent used a buyer representative.
* First-time buyers and repeat buyers were equally likely to use a buyer representative.
* Repeat buyers were more inclined than first-time buyers to use a written agreement.
* Buyers in the Northeast were the most likely to use a buyer representative: buyers in the Midwest were least likely to use a buyer representative.
* Buyers who used their own buyer representative were slightly more than likely to pay the agent themselves that were buyers who used the seller's agent.
Source: 2003 National Association of REALTORS Profile of Home Buyers and Sellers
Who Works Harder: the Buyer's Agent or Seller's Agent?
By Blanche Evans
Buyer's agency has broadened the definition of REALTORs in terms of what they do and for whom. Because the seller pays the commission for both the buyer's agent and the selling agent, both agents actually are working for the seller with the fiduciary responsibility to get the highest price possible for the seller. But the new consumerism has changed that paradigm - buyers want representation, too. That has spawned an entire sub-specialty for agents - those who choose to work exclusively with buyers.
No longer concerned with farming a territory for listings, buyer's agents focus instead on referrals and relocating buyers. They farm corporations, relocation firms and advertise with a wider net to catch not only the in-town buyer, but the transferee as well. Then they are challenged to keep the buyer either by contract or by providing such service that the buyer remains loyal.
Most agents continue to concentrate on listing homes - working with sellers to prepare and present their homes to an ever-changing marketplace. Also working by referral, these agents tend to develop specialties such as a neighborhood, type of home (historic, vacation home,) and price range - luxury, starter, or move-up. With more competition, the seller's agent must work harder to establish an expertise and reputation in their chosen specialties.
Seller's agents also encounter buyers who call from or yard signs, run across the home on the Internet, or attend an open house. Seller's agents are often asked to represent both sides in a dual agency transaction, or if the seller's home fails to suit, they are able to take the buyer and show them other homes, thus becoming the buyer's agent.
Whether an agent is working for the buyer or seller, both sides work hard to make the real estate transaction happen. The seller's agent works to put the home in the most favorable position to sell quickly and at the highest price possible. The buyer's agent works to find the buyer the best home in the market that will fit their needs and at the lowest price. The skill at negotiating the contract separates the professionals from the part-timers, for it is negotiation that keeps the deal from falling through.
But each side has its pitfalls that can prevent the deal from closing. Unreasonable sellers, buyers who buy from other agents, stonewalled negotiations, sellers and buyers who don't tell the truth, the emotional and financial sides of the transaction, and much more can all add up to deal-breakers - some preventable, some negotiable, some not. So who works harder at making the deal - the buyer's agent or the seller's? What is the most difficult aspect of representing the buyer or seller - marketing yourself, farming for business, building a business, working the deal, handling the emotions of the buyer or seller, negotiating or closing? Where do you put the most effort in a transaction? Where do you feel you really earn your commission?
Source: National Association of REALTORS and Realtor Magazine
MORTGAGE FINANCING
Before you get too far into your home search, unless you are planning to pay cash for your home, you really ought to talk to a mortgage lender about financing.
Mortgage pre-approval is an important time-saving step in the process of acquiring your new home. It will enable you to have a clear understanding of your purchasing power, and make it easier for your real estate agent to assist you.
At WEICHERT, REALTORS® - Copley Real Estate.we have strong, longstanding relationships with a number of Boston area and nationwide mortgage lending institutions. When it comes to helping you purchase your new home, we believe strongly in a team approach and the concept of best practice. That is to say, we are happy to recommend a variety of lenders, real estate attorneys, and other ancillary service providers and let you decide which to use. In all cases, we encourage you to shop around and find the right fit, best service, and competitive pricing.
For fast and easy mortgage pre-approval as well as outstanding service, we suggest calling one or all of our preferred lenders. They include Summit Mortgage, Countrywide Home Loans, and Acceptance Mortgage Corporation. Their contact info is as follows:
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